A country has public debt of 1200 billion euros and a GDP of 2000 billion euros. What is the debt-to-GDP ratio?
Answer and explanation
Correct answer: B. 60 %
- Step 1: Ratio = debt / GDP x 100. Step 2. 1200 / 2000 x 100 = 60 %. Answer: 60 %. Why not the others: 166.7 %: the ratio was inverted. 40 %: the difference was used instead of the debt. 12 %: the debt was divided by 100.
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